What is the FICO Credit Score? Why do I need good credit?

Tu Casa

By Nathalia Cruz-Edmonds

The best way to obtain anything material or services in life is with cash.  If you don’t have cash, you may be able to obtain them with credit.  Credit by definition means to obtain an item or services before payment based on trust of future payment, but not everyone can get credit.  Some individuals cannot get credit because they are too young, they never had credit before, they have bad payment history, or they don’t make enough money.  But what is credit?  Why do you need it?  Who created credit?  But why is it soo important?

Due to the fact that the majority of individuals do not have $30,000 in cash in the bank or under a mattress to buy a brand new car or $250,000 in cash to buy a home, people rely on banks, investors, family members and other ways to borrow that money so they can obtain stuff and then they will pay whom lend them the money later with or without interest.  Credit is needed for various reasons but mainly to borrow large amounts of money.  Others, such as landlords and employers, use it to see your payment history because when you pay on time it translate that you are responsible and trustworthy.

In 1956 Bill Fair and Earl Isaac founded FICO in San Jose, California.  They started a software company that measures the consumer’s credit risk and worthiness.  The FICO Score which is a given value to the consumer’s credit risk and worthiness was introduced in 1989.  The score ranges from 300 to 850.  Depending on where your FICO score lands will dictate if (1) you will be able to borrow any money (2) How much your security deposit will be, if renting a home (3) How low or high your interest rate will be and (4) How much money you will be able to borrow.

Each individual credit score consists of several items:

• 35% Payment History - As agreed with the lender, do you make your payment before or after the scheduled date?
• 30% Debt Burden - How much money have your borrow and how much do you still owe
• 15% Length of Credit History - How long have you been borrowing?
• 10% Type of Credit Used - Do you have credit cards, personal loans, car loans, mortgage,
• 10% Recent Credit Searches - Are you shopping around to get credit?

Currently there are three companies that provide you with scores, Experian, TransUnion and Equifax.  The majority of banks when pulling your credit will pull all THREE credit score companies and pick the middle score.  Do you know what your credit score is?  By law, each credit score company will provide you with a ONE FREE credit score a year.  It is imperative for you to use this free service because you want to make sure your information is correct.  Meaning, all payments have been reported correctly, no new accounts have been added.  A great free way to monitor your credit is by creating an account with Credit Karma, www.creditkarma.com.  You might not see all three Credit Bureaus but you get a good overview which you can monitor monthly for FREE!

There are some cool tricks to help you keep your credit score high besides paying your debt in time!  If you have a credit card, maintain the balance below 10%.  So, if you have a $1,000 credit card with Bank of America.  You should keep your balance lower than $100 every month.

If you had some issues in the past where you lost your job and couldn’t pay on time, if it has been more than seven years, you are allowed to ask the Credit Bureau to remove that trade line from your credit history!  If you have a trade line that is older than seven years but you paid on time, DO NOT REMOVE IT!

If you do not have savings, having a good credit history is important for others to lend you money!  The internet have instructions and ideas on how to clear your credit BUT if you do not have the time and need your credit score improved in less than 9 months there are companies that can help you.  Max Score Credit (www.maxscorecredit.com) is a minority owned company with offices in Silver Springs and Baltimore who can help.  They will pull your credit and help you contact the Credit Bureaus to correct any incorrect information by not adding information that can potentially harm your credit.  For more information contact Ana Garcia, Senior Credit Advisor at 410-864-8600 or via email at agarcia@maxscorecredit.com.  Their rates are reasonable and their results are life changing.

If you would like to learn how to buy a home and create a plan to achieve it, please give me a call at (410) 350-5848.

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Nathalia N. Cruz-Edmonds is a REALTOR with Berkshire Hathaway HomeService PenFed Realty.  To schedule a meeting call (410) 350-5848, at her office (410) 464-5500 or via email at nathalia.edmonds@penfedrealty.com.  You can follow her on Facebook at http://facebook.com/NathaliaEdmondsRealtor.   

Tu Casa - ¿Qué es el Puntaje de Crédito?

Tu Casa

Por Nathalia Cruz-Edmonds

En la vida la mejor manera de obtener algo material o de los servicios es con dinero en efectivo. Si usted no tiene dinero en efectivo, es posible que pueda obtener crédito. El diccionario define la palabra crédito como obtener un artículo o servicio antes del pago basado en la confianza de pago futuro. Algunas personas no pueden obtener crédito porque son demasiado jóvenes, o por que nunca tuvo crédito anteriormente, tienen mal historial de pago, o no hacen suficiente dinero. Pero, ¿qué es el crédito? ¿Por qué lo necesitamos? ¿Quién creó el crédito? Pero ¿por qué es tán importante?

La mayoría de las personas no tiene $ 30,000 EE.UU en efectivo en el banco o debajo de un colchón para comprar un coche nuevo o de $ 250,000 EE.UU en efectivo para comprar una casa.  La gente confía en los bancos, inversores, miembros de la familia y otras formas para pedir prestado ese dinero para que puedan obtener cosas y luego lo van a pagar con o sin interés. En estos tiempos se necesita crédito por diversas razones, pero sobre todo para pedir prestado grandes cantidades de dinero. Otros, como los que rentan casas y empresarios, lo usan para ver su historial de pagos, porque el pagar a tiempo se traduce que usted es responsable y digno de confianza.

En 1956 Bill Feria y Earl Isaac fundaron FICO en San José, California. Ellos comenzaron una compañía de programas de computadoras que mide el riesgo de crédito del consumidor y credibilidad de pago. En el 1989 se introdujo el puntaje FICO o FICO Score, es el valor dado al riesgo de crédito del consumidor.  La puntuación es de 300 a 850. Dependiendo del puntaje del FICO score indica si  (1) usted será capaz de pedir prestado dinero ( 2) Cuánto debe ser su depósito de seguridad, si el alquiler de una casa (3) ¿La tasa de interés va a ser baja o alta y (4) ¿Cuánto dinero usted será capaz de pedir prestado.

Cada puntuación de crédito individual se compone de varios elementos:

(A) 35% Historia De Pago - Tal como se acordó con el prestamista, usted hace su pago antes o después de la fecha prevista?

(B) 30% Total Adeudado - ¿Cuánto es el balance que tiene su préstamo y cuánto usted todavía debe

(C) 15% Fecha de Historial de Crédito - ¿Cuando fue la primera vez que usted pidió  crédito?

(D) 10% Tipo de Crédito Usado - ¿Tiene tarjetas de crédito, préstamos personales, préstamos para automóviles, hipotecas, ect?

(F) 10% Búsquedas De Crédito Recientes - ¿Estás investigando quién te puede dar crédito?

Actualmente hay tres empresas que le proporcionan los resultados que son Experian, TransUnion y Equifax. La mayoría de los bancos que piden su crédito va a pedir a las tres compañías de calificación de crédito y van a escoger la puntuación media. ¿Sabes cual es tu puntaje de crédito? Por ley, cada empresa de puntaje de crédito le proporcionará la puntuación de crédito gratis una vez al año. Es imprescindible que usted utilize este servicio gratuito para poder asegurarse que su información es correcta. Esto quiere decir que todos los pagos se han reportado correctamente o no se han añadido nuevas cuentas sin su autorización. Una gran manera gratuita para monitorear su crédito es mediante la creación de una cuenta en Credit Karma, www.creditkarma.com.  Es posible que no vea las tres agencias de crédito, pero por lo menos te dan una buena información general que usted puede monitorear mensualmente GRATIS!

Hay algunos trucos para ayudarle a mantener su calificación de crédito alta además de pagar su deuda en el tiempo! Si usted tiene una tarjeta de crédito, mantener el balance por debajo del 10%. Por lo tanto, si usted tiene una tarjeta de crédito de $ 1,000 con el Bank of America. Usted debe mantener su saldo inferior a $ 100 cada mes.

Si usted tuvo algunos problemas en el pasado donde usted perdió su trabajo y no pudo pagar sus deudas a tiempo pero ya ha pasado más de siete años, usted se le permite solicitar a la compañía de puntaje de crédito a que elimine esa línea el crédito de su historial.  Si usted tiene una línea de crédito que tiene más de siete años, pero que pagó a tiempo, NO QUITE!

Si usted no tiene ahorros, el tener un buen historial de crédito es importante para que otras personas le presten dinero!  El Internet tiene instrucciones e ideas para poder limpiar su crédito.  Pero si usted no tiene el tiempo y la necesita de su puntaje de crédito sea mejorado en menos de 9 meses hay empresas que le pueden ayudar. Credit Score Max (www.maxscorecredit.com) es una empresa con oficinas en Silver Springs y Baltimore que pueden ayudar. Ellos piden su crédito y lo ayudan a ponerse en contacto con las oficinas de crédito para corregir o borrar articulos en su crédito para mejorar su puntuación. Para más información póngase en contacto con Ana García, Asesor de Crédito al 410-864-8600 o por correo electrónico a agarcia@maxscorecredit.com. Sus tarifas son razonables y sus resultados son un cambio de vida.

Si a usted le gustaría aprender cómo comprar una casa y crear un plan para lograrlo, por favor llámeme al (410) 350-5848.

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Nathalia N. Cruz-Edmonds es un REALTOR® con Berkshire Hathaway HomeService PenFed Realty. Para programar una reunión llamar al (410) 350-5848, su oficina (410) 464-5500 o por correo electrónico a nathalia.edmonds@penfedrealty.com. Puedes seguirla en Facebook en http://facebook.com/QuieroMiPrimerHogar.

RENTING - Breaking your Lease

Tu Casa

By Nathalia N. Cruz-Edmonds

Did you notice the leaves are starting to change color or that the temperature started dropping at night?  You must have notice that Starbucks brought back their Pumpkin Spice Latte.  Yes, Fall is upon us.  Our life also comes with changes, some expected and others unexpected.  But that is not the same when you sign a lease agreement for the home where you are currently living in.  The lease agreement is an enforceable piece of paper, with conditions written in black or white.  It’s a business transaction, no emotion or feelings involved.  The lease agreement does not care if you get sick, get divorced, lose your job, have a baby or get married.  The lease agreement doesn’t care, because it’s a piece of paper.

This piece of paper is very valuable and very costly, to you it will depend on which side you are in the transaction.  That is why you MUST read the lease agreement before you get keys to your new home.  No one can make you sign a lease agreement if you do not feel at ease.  Your landlord cannot deny you of getting a copy of the lease agreement for you to read at home or with your lawyer.  A judge can rule in favor of the Landlord once you get keys, but you must be prepared because the lease agreement is a legal binding document and whether or not you got keys, you made an agreement in writing that is signed, to move to a home in exchange of paying the landlord a certain amount of money.  Ignorance is very expensive.

One clause on the lease agreement that in my nine years experience working in residential property management residents seem to forget until it is necessary is when they need to break their lease.  The resident got a new job at a different city or state, or the resident got transferred or the roommate moved out and you cannot afford the rent on your own or a family member got sick and you want to move with them to help them out.  Unless you are a clairvoyant, you had no clue what the future was going to bring you.  If you knew what was going to happen you would have stayed where you were or a great new opportunity came your way and you must take it.  The lease agreement does not cover these situations.

If your landlord takes you to court for breaking your lease, the state of Maryland will hold the resident responsible for the loss of rental income.  If the lease agreement does not have a specific monetary amount of the cost of breaking the lease, the judge can hold you responsible for the remainder of the lease agreement.  For example, if your lease ends on December 31st but you moved out October 1st, you will be responsible for October, November and December’s rent.  The judge can actually add the cost of doing marketing to reimburse the landlord the expense of re-renting the home you just vacated.  The only good news is, if you know the landlord was able to re-rent the property, your responsibility will end when the other person moved in.  So, you gave keys on October 1st and the new resident moved in on November 1st,  you are responsible for just October and any marketing cost.  Remember, this is only ONE scenario, you MUST read your lease agreement.

In other cases the lease agreement can say, you must provide two months notice and will be responsible for an additional monetary penalty of two months rent.  The only way this will be enforceable is if you sign an agreement that your understand you have to give two months notice and you will pay two months penalty.  If you do not sign this document and the landlord re-rents the home you are not responsible to pay the penalty.  Some leases do not have a clause.

One important thing, in the state of Maryland a military personnel who has received orders for a permanent change of station or temporary duty for more than three months are allowed to break their lease with proper notice.  Read the lease agreement to see if there are any monetary penalties involved.

This article does not serve as legal advice.  If you have any questions, have a lawyer read your lease agreement.  Every lease agreement is different but at the end of the day, if you get keys to a home that is the moment the clock starts and it will end as per the the lease agreement end date.  Make sure to read how much notice you need to give your landlord if you do not wish to renew your lease agreement because some leases have automatic renews!

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Nathalia N. Cruz-Edmonds is a REALTOR with Berkshire Hathaway HomeService PenFed Realty.  To schedule a meeting call (410) 350-5848, at her office (410) 464-5500 or via email at nathalia.edmonds@penfedrealty.com.  You can follow her on Facebook at http://facebook.com/NathaliaEdmondsRealtor.  

Renting a property that is being sold. What happens next?

Tu Casa

By Nathalia N. Cruz-Edmonds

The market to buy a home is “sizzling” hot but for some reason you cannot do it at this time therefore you are renting.  You have lived inside your home for about a year and a couple of months and you love it.  Out of the blue, the owner asks to enter the property to do an inspection the next day.  The owner and other people enter your home, they tour the home and they leave.  A couple of weeks later you get the notification that someone new owns your home.  Now what?

In the state of Maryland, each county deals with a resale of an investment property differently.  But if you are living in Baltimore City, the owner of the home has to provide you with a “Baltimore City Exemption of Tenant’s Right of First Refusal”.  This form must be sent to you via certified mail within forty-eight (48) of the home going on the market.  Why do REALTORS have to do this?  Because in the government believes the Renter must be given a fair chance at buying where they currently live.  It gives a fair advantage to everyone, specially those who are currently living inside the property.  This form also provides the name, address and phone number of the Baltimore City Department of Housing and Community Development which can help you by providing you with information on how to buy that or other homes.

If you haven't’ received this form and you know the property you live at has been sold, please contact the Maryland Real Estate Commission.  They are located at 500 North Calvert Street 3rd Floor in Baltimore.  You can also call them at (410) 230-6230.  You may also visit their website at http://www.dllr.state.md.us/license/mrec/.

What happens if the Listing Agent did send the form and you decided to not buy the property?  There are many scenarios.  The Good Scenario is when the new owner decides to keep you as a tenant with the same terms.  Meaning, same rental price and same lease dates.  Perfect!  Have a new lease signed with the new owner and get the address of where you can make your rental payments.  Read your lease agreement well and ask questions if you do not understand.  If you paid a Security Deposit, you DO NOT need to pay a new one.  The Security Deposit must have been given to the new owner as part of the sale.

The Bad Scenario is when the new owners decide to let you complete the lease but provide you with a sixty (60) day notice to vacate sixty (60) days before your lease expires.  There is no law that protects you against this.  This is every landlord’s/owner’s right to do when the lease is about to end.  The Ugly Scenario is when the Landlord/Owner decides to file a “Wrongful Entry & Detainer”.  Unlike the “Tenant Holding Over” which is done after a tenant stays inside the property after the scheduled move out date, the Wrongful Entry & Detainer the new owner does NOT want any residents inside the property.  The Wrongful Entry & Detainer as well as the Tenant Holding Over work just like an eviction for failure to pay rent.

The Landlord or Owner must go to the District Court and fill out the proper documentation and pay a fee.  The Clerk’s Office then accepts the request, which is a lawsuit, and schedules a date.  A copy is sent to the house in question stating which date the case is.  The court might send the court date in the mail or the Sheriff might tape it to the door.  Once the court date arrives, if you do not show up because (1) you forgot or (2) you never got the notice, that will be in your disadvantage.  Some procedures provide you with a four day appeal but a judge still has to approve it.  Once the judge approves the judgement to have the request from the Landlord or Owner to remove you from their property the case will be transfer to the Sheriff’s office.  To get a date as to when the Sheriff will knock on your door and ask you to leave the premise can take up to an additional four (4) to six (6) weeks.  When the Sheriff knocks on your door, he will ask you to take your most valuable possessions and immediately leave the premises.  The new Landlord or Owner will then change the locks to the house.  If you  have furniture and clothes inside, in Baltimore City you will lose everything once the Sheriff ask you to leave the home.  In other counties the Landlord or Owner will bring people to remove your items for you and place them in the curb.  After twenty-four (24) hours have passed the Landlord or Owner can place any items in the curb inside the trash can.  Please seek legal advice if any of these two forms have been given to you.

Nathalia N. Cruz-Edmonds is a REALTOR with Berkshire Hathaway HomeService PenFed Realty.  To schedule a meeting call at (410) 350-5848, or at her office (410) 464-5500 or via email at nathalia.edmonds@penfedrealty.com.  To learn about available properties or read her blog please visit http://nathaliaedmonds.penfedrealty.com.  She is also the owner of Clearview Real Estate Management LLC a third party real estate management company in Maryland for more information visit http://clearviewREM.com.

Contratistas y Permisos: Que necesitas para poder referir TU negocio y para vender tu inversión!

Tu Casa

Por Nathalia N. Cruz-Edmonds

¿Sabía usted que si usted tiene una empresa de pintar casas en Maryland pero no tiene la licencia de la Comisión de mejoras para el hogar o como se llama en ingles, Maryland Home Improvement Commission, o por sus siglas en inglés MHIC, un agente de bienes raíces no puede referir futuro negocio? En noviembre de 2014, la Comisión de Bienes Raíces Maryland creó un reglamento que prohíbe a los agentes de bienes raíces y con penalidad de multas si es encontrado culpable de referir proveedores de servicios sin licencia. Este reglamento requiere que para para poder hacer un referido, los agentes tiene que hacer los referidos por escrito, tiene que verificar que el proveedor de servicios tiene una licencia del estado actual, informar la fecha en que el agente verificó por última la base de datos de licencias de estado y proporcionar un enlace electrónico al registro de licencias.

El agente de bienes raíces que se han encontrado violando esta regulación podría ser multado hasta $ 5,000 por infracción. Esto hará que conseguir nuevos clientes a través de una colaboración con agentes sea muy difícil. ¿Por qué es esto? Debido a que los consumidores siguen siendo afectados por los propietarios de negocios sin escrúpulos que hacen trampa, estafa y roban a la gente de buen corazón. El estado de Maryland ha considerado agentes inmobiliarios como una fuente de confianza, por lo tanto es responsable de proporcionar información precisa a sus clientes.

La siguiente es una lista de los negocios que necesitan ser adecuadamente licencia:

• Se requiere una licencia MHIC al instalar cualquier cosa que se convierte fijada permanentemente a la casa o propiedad, como baldosas y suelos de madera o un sistema de aspiración central, etc.
• Edificio o reforzar la chimenea, o la instalación de un casquillo de la chimenea, entonces se requiere una licencia de mejoras para el hogar. Servicio de limpieza no está incluido.
• Si el contratista realiza cualquiera de los servicios de reparación en la casa, entonces se requiere una licencia MHIC. No, demolición y trabajo de limpieza no se considera dentro de la definición de "mejoras para el hogar." Por lo tanto, el contratista no está obligado a tener una licencia MHIC para realizar estos servicios.
• La Comisión ha determinado que la instalación de televisores montados en la pared en las residencias no se considera "mejoras para el hogar"; por tanto, no se requiere una licencia MHIC.
• Pintura de casas se incluye dentro de la definición de "mejoras para el hogar." Esto incluye pintura interior y exterior y la pintura decorativa también.
• Sí, caminos de entrada, incluyendo caminos de grava, están dentro de la definición de "mejoras para el hogar"; por lo tanto, se requiere de un contratista autorizado para realizar el trabajo.
• No, una licencia MHIC no es necesaria para los tratamientos de ventanas interiores, como la instalación de cortinas o persianas. Esto se considera la decoración y no está dentro de la definición de "mejoras para el hogar."
• Trabajo realizado en la comunidad de bienes no cae dentro de la jurisdicción de la Comisión de mejoras para el hogar. Si un propietario contrata a alguien para construir un columpio o en el gimnasio de la selva en su casa, entonces se requiere una licencia MHIC, si la estructura se fijará de forma permanente a la tierra.
• Se requiere una licencia mejoras para el hogar, si la nave se instalará de forma permanente por el contratista en los terrenos adyacentes a la residencia. Si el contratista vende y entrega el cobertizo y simplemente lo coloca en el suelo, o sobre una base no permanente, como bloques de cemento, el contratista no está obligado a tener una licencia MHIC.
• Sí, se requiere una licencia de contratista de mejoras al hogar o subcontratista para instalar paneles solares para un dueño de casa, sin importar si los paneles se instalarán en el hogar o una dependencia adyacente a una residencia, o se adjuntará a la tierra al lado de la residencia. Se requiere un maestro electricista con licencia para conectar los paneles para el sistema eléctrico.
• Mientras que los contratistas del paisaje son licenciados por MHIC, el Departamento de Recursos Naturales de Maryland es responsable de los expertos de árboles de licencia. El trabajo de un experto árbol incluye el recorte, poda, raleo, el cableado, la conformación, la eliminación o la reducción de la corona de los árboles que son 20 pies o más de altura.

Una buena guía para saber si su empresa tiene que ser una licencia es responder a esta pregunta, es la mejora o reparación va a estar conectado permanentemente a la estructura? Si la respuesta es sí, usted necesita una licencia MHIC. Si usted tiene alguna pregunta con respecto a la regulación de licencias para en hogar, póngase en contacto con mhic@dllr.state.md.us correo electrónico o visite en línea en http://www.dllr.state.md.us/license/mhic/

Para recibir ayuda y educarse o capacitarse para aprender sobre esta licencia, favor de llamar a Hispanos Sin Fronteras al (301) 933-4447 o búsquenlos en Facebook https://www.facebook.com/SomosHispanosSinFronteras.

La siguiente lista son los proveedores de servicios que el agente inmobiliario necesita buscar que tengan licencia, incluye, pero no se limita a, las referencias a los prestamistas hipotecarios, corredores de hipotecas, tasadores de bienes raíces, los inspectores de viviendas, contratistas de mejoras al hogar, fontaneros, electricistas, calefacción, ventilación y aire acondicionado contratistas y todos los demás que se requiera ser licenciado. El Reglamento cubre referencias proporcionadas en relación con "la prestación de servicios de corretaje de bienes raíces."

Otro aspecto muy importante es que al hacer renovaciones en su casa, el contratista deberá ponerse en contacto con la ciudad o el condado donde se encuentra la casa y pedir permiso o “permits” en inglés.  

Usualmente, hay que pedir permiso para hacer cambios eléctricos, instalación de refrigeración y calefacción, insolación, añadiduras o remover parte de las estructura de una vivienda, plomería, entre otras cosas.  Para un listado en específico, usted debe buscar la lista en el condado donde se encuentra la propiedad.  Si usted quiere comprar una propiedad para alquilar o para vender usted se debe de seguir estas normas para evitar problemas en el futuro.

Se requieren permisos de construcción para lo siguiente:

• Estructuras de accesorios (cobertizos, garajes, pérgolas, etc.) más de 120 pies cuadrados
• Todas las estructuras accesorias situadas en la inundación de la zona A o ubicadas en los barrios históricos
• Garajes y cocheras asociadas a viviendas unifamiliares
• En la tierra piscinas de más de 250 pies cuadrados con lámina de agua de 24 pulgadas o más
• Todas las piscinas enterradas: una barrera de seguridad de 48 pulgadas con, puertas de cierre automático de auto-bloqueo se requiere
• Muros de más de 36 pulgadas: se requieren dibujos de ingeniería desde hace más de 48 pulgadas
• Cercas más de 42 pulgadas de altura
• Cubiertas superior a 16 pulgadas sobre el grado más bajo y excede 120 pies cuadrados
• Estufas de leña, estufas de pellets y chimeneas
• Las adiciones y modificaciones estructurales en las viviendas existentes
• Encerrando de porches abiertos y cubiertas
• Excavaciones Sótano
• Cambio de uso de la estructura
• Permisos de demolición
• La clasificación más de 5.000 pies cuadrados
• Alteraciones de casas históricas

Estados y condados proporcionan números de teléfono o sitios web para el consumidor de encontrar si la empresa está licencias o para verificar si se solicitaron y aprobaron los permisos. Para algunos puede ser demasiado y demasiado caro, pero al final se le proporciona una paz de la mente. El costo de hacer negocios es alto, pero la tranquilidad de saber que la posibilidad de su quema de casa porque de no ser correctamente cableadas disminuye en gran medida.

Nathalia N. Cruz-Edmonds es un REALTOR® con Berkshire Hathaway HomeService PenFed Realty. Para programar una llamada de reunión (410) 350-5848, en su oficina (410) 464-5500 o por correo electrónico a nathaliaedmonds@gmail.com. Ella es también el dueño de Clearview Real Estate Management LLC una compañía de bienes raíces para la manejación de propiedades.

FOUND

Since I was little, I have been creating art.

The years moved forward, as I did, the less I created.

But my soul cried out for me to release.  To break the tight boundaries inset for myself.

I caved.

I drew.

I FOUND.

Me.

I found the house of my dreams, when can I move in?

I found the house of my dreams, when can I move in?

By Nathalia N. Edmonds

You got your mortgage pre-approval letter and know how much you can spend to buy your new home!  If you qualify, you attended the First Time Homeowner seminar.  You hired an agent and you know what type of home you are going to buy.  Now what?

Is there a limit of how many homes you can see?  No.  Should you see 100 houses versus 10 or 3?  You see as how many houses you want to see.  I tell my clients that the house you want to make yours is the house that made your heart fluttered when you entered.  Or like my mother, she heard bells and felt an overwhelming sense of peace.  A great way to take control of which houses to see is when your agent sends you daily automated emails which will alert you when a new home becomes available!  Those emails are up-to-date and with correct information.  Looking at properties in Zillow, Trulia or Redfin do not have accurate information.  In Maryland, agents pay the Metropolitan Regional Information Systems or MRIS to see all the accurate information of properties that are actively available, under contract, sold even those properties that are withdrawn.  Trust is a very important aspect of your relationship with your Agent.  Remember, if you feel your current agent is not a good fit, you may cancel your business relationship and hire someone else!  Make sure to read your agreement first.  In the state of Maryland it is mandatory to place a contract expiration date as well as instructions on how to cancel your contract with the agent and broker.

Now, you found your home but not just your new home, you found YOUR DREAM HOME!  With your approval, your agent will write an offer on your behalf.  A contract will be about 47 pages long.  It could be less or it could be more.  In this contract you will let the seller know how much you are willing to pay for their home.  How much deposit you will pay, where you will deposit that money, how you will pay for the home, if you are doing any inspections, what you want to keep from the house, acknowledge the settlement date, amongst other things.  Other things will be acknowledgement of age of the property and possibility of lead, and all kinds of disclosures depending on county and type of home you are buying, especially if the neighborhood has a Home Owner Association.  In your offer, you will have dates of when you are due to do the inspections, when to apply for your mortgage loan, when you are going to settlement!  With the offer you will need to submit your mortgage pre-approval letter and your earnest money deposit.

What is the earnest money deposit?  The EMD or escrow money, how some agents call it, is a “good faith payment” it shows the seller that you are serious about buying their home, soo serious you are willing to put money down.  This amount it is usually 1% of the sales price or 10% if you are buying the home in cash.  So if you are offering $100,000 to buy their home, you need to prove a check or money order in the amount of $1,000.00.  This EMD will only be deposited ONCE your offer is accepted by the seller.  This money will be applied towards what you need to pay to get your home, meaning, you will now have to pay $99,000 plus closing costs.

Once the seller receives the offer, he or she will evaluate the offer or several offers and make a decision.  Do not be alarmed if your agent calls you back with a new offer from the seller.  Your agent will have your best interest and inform you of what are the best choices.  But remember, you are the only person who will make the decision.  Agents are advisors and messengers.  A good agent will email you the instructions you gave them over the phone for both your records.

Immediately after your offer was accepted by the seller you MUST contact your loan officer and start your application process.  If you already got “pre-approved” why do you need to apply?  Well, the loan officer creates your file and starts getting you formally approved and get the house appraised.  They make sure you didn’t go nuts and buy a boat or got into more debt.  The underwriter also schedules the appraisal to make sure the home is good collateral for the loan.  This process could easily take about 30 to 40 days.  It is important that YOU are as responsible to close early.  If you delay giving your loan officer all the documents he/she asks, you will delay the process.  Once the appraiser returns their findings and the home is good collateral, you will get approved or denied for the loan.  BUT BE AWARE, the underwriter will check your credit the day before or the day of the settlement and approve the loan!  Buy furniture AFTER settlement NOT before!

Simultaneously, your agent will schedule all the inspections.  You should ALWAYS do a structural and mechanical inspection.  This inspection MUST be done by a Licensed Home Inspector.  You can go to https://goo.gl/x0Ic5h and search if that person is licensed!  Inspections could run you about $250 up to $500.  You can also do Lead, Mold, Termite, Radon, Chimney and others.  The buyer will ALWAYS be responsible to pay for the inspections!  And don’t forget to go to the inspections!!

Around that same time, you would have to pick a Title company to help you investigate if the property has any issues with the past ownerships or any debts due to unpaid taxes, water bills or any other liens or debts against the property.

After all these things are done, you should expect to close between 45 days or 60 days and this is only if you are asking for money!  If you are paying your future home in cash, closing will happen in about 45 days.  At settlement, you must make sure you bring the check you need to pay, if any.  If you are a first time homeowner you could get $5,000 towards closing cost and you could have ask the seller for 3% closing cost help, which in some cases, you don’t need to bring anything.  Bring your ID!  Your loan officer will have given the title company their bank information to wire the money to which the title company will pay the seller’s mortgage and give him or her the difference in a check.  The sellers will bring the keys to your future home.  After signing the new title, the receipt or HUD1, you get your keys and the seller gets their check and you go home to your new home!

If you would like to learn more about the process in buying your future home, please contact me or your preferred agent!  

Nathalia N. Cruz-Edmonds is a REALTOR with Berkshire Hathaway HomeService PenFed Realty.  To schedule a meeting call (410) 350-5848, at her office (410) 464-5500 or via email at nathaliaedmonds@gmail.com.  She is also the owner of Clearview Real Estate Management LLC a third party real estate management company in Maryland.